Flash loan attack on DeFi platform ‘Belt Finance’ sees $6.2 million gone

Hi, I’m Bitquick, you may know me as the #1 Bitcoin Lending platform  in the United States. Over the past few years, I have seen my share of good days and bad days, investing, lending, and most recently, being a victim of a flash lending cyber-attack. You may be wondering what happened, how it happened, and why it happened.

A hidden vulnerability in the world’s most popular decentralized finance platform, DeFi lending protocol Belt Finance, has been discovered. The vulnerability has been used to steal over $6.2 million worth of ether in a token sale (ICO). The vulnerability has been used to create an “evil maid” attack, where the attacker controls the owner of the wallet.

On Sunday, a hacker used a flash loan to drain the trust fund of a lending platform that allows users to lend fiat-collateralized loans to crypto traders. The attack took place on the platform, Belt Finance, which claims it has $6.2 million in loan repayments outstanding.

Belt Finance, a decentralized finance (DeFi) platform based on the Binance Smart Chain (BSC) smart contract network, was the latest project to fall victim to a credit blitz, losing more than $6.2 million in tokens. The 29th. In May 2021, a flash credit attack was initiated on the BSC 4Belt pool (USDT/USDC/BUSD/DAI). The attacker created a clever contract that PancakeSwap used for flash loans and abused our BeltBUSD pool and underlying policy protocols, and then proceeded to execute the contract 8 times, making a total profit of 6,234,753 BUSD, Belt Finance wrote in a post-mortem yesterday. 1/ We apologize for the delay, but we wanted to make things right. Here is a link to our incident report: https://t.co/l1hmAlMGbM – Belt Finance (@BELT_Finance) 30. May 2021

Another DeFi road

Flash credit exploits have become increasingly common in the DeFi space lately. With this attack vector, hackers typically take large balances from other platforms and use those funds to manipulate token prices in the projects they target. In this way, the perpetrators can quickly and illegally obtain large sums of excess money, while being able to repay the loan later. According to Belt Finance, only two cash pools – BeltBUSD and 4Belt – were affected, with users losing 21.36% and 5.51% of their funds, respectively. As a result of the attack, deposits and withdrawals at the affected pools were suspended for 48 hours. So far, Belt Finance developers have indicated that they have identified and successfully patched the vulnerability that enabled the attack. We’re doing everything we can to make sure this doesn’t happen again. We are also in the process of setting up a compensation plan for our users. Our users and their values are very important to us, and while we couldn’t foresee this attack, we don’t want it to negatively impact our users, the developers said.

Flash credit attacks on the rise

The compensation plan is expected to be published on 1 January 2011. June is expected. Meanwhile, the Belt Finance team has also assured users that it has not sold its tokens, which can be verified at the address posted openly in our Telegram group. As attacks against the BSC ecosystem become more frequent, this issue is quickly becoming a concern for all members of the BSC community. We hope the BSC community can work together to address these issues and the root causes that contribute to such attacks, Belt Finance concluded: We’ll fix it. As mentioned, several other BSC-based DeFi platforms have also recently been loaned out. A few days ago, for example, BurgerSwap lost over $7.2 million in BNB, ETH, BURGER and other chips in a similar attack. Previously, the Pancake Bunny token dropped 90% after a $40 million credit blitz.

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BitQuick, a peer-to-peer (P2P) cryptocurrency startup, has seen its assets stolen by an attacker after it was hit by a crippling flash crash on its exchange platform. In the attack, which appears to have begun on May 31, the attacker was able to freeze $6.2 million in slippage funds, according to a blog post published by the startup on June 1.. Read more about flash loan arbitrage bot and let us know what you think.

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